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Michael Steinhardt: "A Lot More Pain"

June 07, 2009
Saj Karsan

Trader Mark

Great video on the non cheerleading financial station, Bloomberg... if you are unfamiliar with Michael Steinhardthe was a hedge fund manager when hedge fund managers had chest hair, and were generally over the age of 35. Before the dominance of quant funds, and HAL9000 program trading. That said, guys like Steinhardt in hedge funds and Peter Lynch in mutual funds had a lot easier environment to work in for much of their careers ... 83 to 99 the market generally created some great tailwinds versus nowadays when it wants to rip your head off and does nothing for a decade.

He has a profile here

Steinhardt Partners achieved a performance track record that still stands out on Wall Street: 24% compound average annual returns – more than double the S&P 500 – over a 28-year period. What's more amazing is that Steinhardt accomplished this record with stocks, bonds, long and short options, currencies and time horizons ranging from 30 minutes to 30 days.

... I think I've seen him once? (about 3-4 months ago) on CNBC in all these years I've been subject to the pom poms. I thought I posted that video on the blog but can't find it in archives... maybe I did not.

Needless to say, he sounds like he could write for Fund My Mutual Fund instead of drinking from the Kool Aid gang. Oh well the stock market is saying he is "wrong" because as the Oracle of all things, the stock market knows all about the coming 4-6 months. (as we saw in October 2007)

"A Lot More Pain"

"The Economy is Weak. It Will Remain Weak"

"The Dangers Out There Remain Consequential"

"The Dangers in the Economy are Most Everywhere"

"Savings Will Take a Different Perspective ... in the Hearts and Minds of the American Consumer"

"Spending Won't Pick Up in a Traditional Way as the End of Most Recessions"

All should sound familiar to our readers...

...but other than that, he waved a few green shoots around - 3 minutes (there appears to be "more" but Bloomberg doesn't post video in an easy to find format)

Trader Mark


About the author:

Trader Mark
Saj Karsan founded an investment and research firm that is based on the principles of value investing. He has an MBA from the Richard Ivey School of Business, and an undergraduate engineering degree from McGill University.

Rating: 4.1/5 (13 votes)


Sabonis premium member - 5 years ago
interesting...I was wondering who bought Michael Jackson's "Neverland Ranch"...
Max7777 premium member - 5 years ago
I think he instinctively has one of the best trading minds in Wall streets. For this very reason I found his book "No Bull: My Life in and out of Markets" rather useless as it is very hard to explain how you make 24% ROI, if it is based on your instinct. His instinctive bets were extremely smart and based on fundamentals, yet most his bets were for a few hours or a few days, so it is not something we could emulate if he was still investing today. The book's only interesting part was about his father, Sol Frank Steinhardt,AKA "Red McGee." the number one jewelry fence in New York, In No Bull, Steinhardt describes how his father bankrolled his early market bets by giving him envelopes stuffed with $10,000 in cash... but it is good to see his point of view as in his CNBC interview he said the risk is clearly still there but here he tells us we are probably past the bottom.
Max7777 premium member - 5 years ago
A more interesting write up in his own words, of how he made his 24% ROI over 29 years is in the book by Schwager, Jack D. (1993). Market Wizards: Interviews with Top Traders. that was a very interesting book.

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